Winc owner pays $361M for Pitney Bowes’ production mail tech business
- 01 May, 2018 11:15
Platinum Equity has signed a definitive agreement to acquire Pitney Bowes’ Document Messaging Technologies production mail business and supporting software for US$361 million.
Pitney Bowes’ Document Messaging Technologies (DMT) production mail business is a global provider of enterprise print, mail and customer communications solutions.
The US-based private equity investment firm that is snapping up the business said it anticipates proceeds from the sale to come to approximately US$270 million, with Pitney Bowes expecting to use the majority of the net proceeds from the sale to pay down debt.
Platinum Equity, a global private equity firm, bought Stapes’ operations in Australia and New Zealand (A/NZ) in early 2017, subsequently rebranding the business as Winc.
In February, Platinum Equity completed another local acquisition, this time buying up Office Depot’s OfficeMax business in Australia, revealing plans to merge the business with its existing Winc business in the local market.
For Platinum Equity, its new acquisition – Pitney Bowes’ DMT business – stands as a leading player in its market, with the tools it needs to thrive as a standalone business.
“It has a broad range of advanced inserting, sorting and print solutions and a committed global workforce that delivers world-class client satisfaction,” Platinum Equity principal Adam Cooper said.
“We look forward to partnering with the management team to drive operational excellence and invest in growth, both organically and through prospective strategic acquisitions,” he said.
Also included in the acquisition deal is Pitney Bowes’ enterprise mail, print and data management software business, which integrates data with print streams to optimise document output for high-volume production mailers.
According to Pitney Bowes CEO Marc Lautenbach, the company initiated a review in November last year of strategic alternatives to create long-term shareholder value, which ultimately led to the decision to offload the DMT business.
“Our decision to sell our Document Messaging Technology business is the result of a thorough evaluation of the best opportunity for long-term growth for both DMT and Pitney Bowes,” Lautenbach said.
“As a stand-alone business, DMT will have greater flexibility and opportunity to build on its industry-leading portfolio, create greater market opportunity and deliver new client value,” he said.